1) The document discusses the financial challenges facing many low and middle income employees as wages have stagnated while costs of living and healthcare have increased. This puts pressure on employers to control labor costs while still engaging employees. 2) It suggests employee purchase programs as a way for employers to help employees afford needed purchases through interest-free payroll deductions, reducing financial stress. Recent surveys found high employee satisfaction with such programs. 3) PayCheck Direct is highlighted as a provider of employee purchase programs that leverages the merchandising and marketing resources of its parent company to provide value to both employees and employers.

1. SpecialReport
Between a Rock and
a Hard Place?
Controlling wages and benefits while
improving employee engagement—
where’s your balance?
Sponsored by

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3. Table of Contents
Between a Rock and a Hard Place? Controlling wages and benefits while improving
employee engagement—where’s your balance?.......................................................................1
Economy Coming Back … BUT.................................................................................................. 1
Higher Health Insurance Costs Increase Pressure................................................................... 2
Employers See the Problem......................................................................................................... 3
What Employees Say They Are Stressing Over....................................................................... 3
Are Financial Wellness Programs the Answer?....................................................................... 4
Costly Financing Alternatives..................................................................................................... 4
What Employers Can Do to Lessen Financial Problems of Employees................................ 5
Purchase Programs....................................................................................................................... 5
Recent Survey Shows Strong Support for Employee Purchase Programs........................... 6
Win/Win/Win/Win.................................................................................................................... 6
PayCheck Direct—Helping Employees Do More With What They Have........................... 7

4. It’s the smartest voluntary benefit you’ll add this year!
Most employees today–particularly low- and middle-income workers–are
under financial stress and living paycheck to paycheck.
Progressive employers are responding with a voluntary benefit that helps
employees do more with the money they have: a purchasing program.
PayCheck Direct®
is the premier purchase program that helps employees
buy what they need through:
The program is easy to start up at any time and no out-of-pocket costs
to implement. Contact us directly to get started today.
62777
Interest-free financing
Low convenient payroll deductions over 12 months
No credit checks
Call: 866-584-0542 | Email: sales@mypaycheckdirect.com
Visit: www.mypaycheckdirect.com

5. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
1
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
1
u Low wage offshore labor
u Immigration (legal and illegal) to the U.S. of people willing to
work for lower wages
u Manufacturing automation
To remain competitive and profitable, businesses have had to man-
age labor and benefits costs very carefully. Low- and middle-income
employees have felt this squeeze most acutely. While top earners
have seen steady and significant real wage growth, inflation-adjusted
pay for workers in the bottom half of the income ladder tells another
story.
Between a Rock and
a Hard Place?
Controlling wages and benefits
while improving employee
engagement—where’s your balance?
Are you controlling wage and benefit costs or are they controlling
you? Are you winning the battle for employee retention and
engagement? There is a route to get you and your employees out
from between the challenges of increasing financial burdens and
improving employee wellness.
Economy Coming Back … BUT
The U.S. economy is in its best shape since the recession. Economic
growth, while not spectacular, has been steady. Although acceler-
ating, employment growth is inconsistent. The Labor Department,
in its 2014 year-ending report, indicated employment increased by
almost 3 million workers, the largest gain since 1999.
However, the same report said, average hourly wages dropped in
the final month of 2014, continuing a trend of meager wage growth.
Stagnant wages for many U.S. workers aren’t just a recent trend, and
the causes are systemic:

6. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
2
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
2
In the chart above, you can see that real wages for those at the top of
the wage scale have gone up significantly; wages for those at the bot-
tom of the scale have actually dropped.
The Financial Post in March of 2014 reported that since 2007 infla-
tion-adjusted income has declined 9% for the bottom 40% of U.S.
households. The bottom 90% experienced a decrease in income from
2009 to 2012, meaning their share of income gains was negative.
As a result of this income squeeze, low- and middle-income workers
in this country increasingly find themselves struggling financially.
The Consumer Financial Protection Bureau reported in 2014 that 68%
of U.S. workers now live paycheck to paycheck. No surprise, studies
suggest that similar proportions of Americans report that financial
stress is their most common form of stress. (Source: http://files.
consumerfinance.gov/f/201408_cfpb_report_financial-wellness-at-
work.pdf)
Higher Health Insurance Costs Increase Pressure
To compound the problem, company-sponsored health insurance is
also evolving as a result of healthcare reform and a need to control
costs. The principle changes include higher deductibles and
co-insurance which lead to higher out-of-pocket costs for medi-
cal care. USA Today reported in September 2014 that the average
monthly health plan deductible has more than doubled in the past
eight years to $1,217. Low-income Americans can earn vouchers and
* The xth-percentile wage is the wage at which x% of wage earners earn less and (100-x)% earn more.
Source: EPI analysis of Current Population Survey Outgoing Rotation Group microdata

7. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
3
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
3
obtain other support under the new healthcare reform initiatives.
Middle-class families most frequently make difficult choices about
insurance coverage as evidenced by almost 50% of middle-class
workers having either skipped healthcare services or suffered finan-
cial hardship as a result of health expenses.
Employers See the Problem
U.S. companies are quickly becoming more aware of the extent
of employee financial challenges as well as the impact on their
businesses. A recent January 1, 2015 USA Today news article, for
example, suggests that:
u 61% of HR professionals agree financial stress has an impact on
employee performance
u 20% of employees have missed work in the past year to deal
with a financial problem
u 24% admit personal finances have been a distraction at work.
What Employees Say They Are Stressing Over
PWC’s 2014 Employee Financial Wellness Survey respondents listed
their top financial concerns in the table below. No surprise, the differ-
ent generations have somewhat different financial concerns.
Source: PWC’s 2014 Employee Financial Wellness Survey

8. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
4
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
Looking at the chart, we can see that:
u Emergency savings and retirement are of greatest concern.
u Boomers (no surprise) are most worried about retirement, and
Gen Y workers are least worried.
u Boomers are also less worried about managing expenses, being
laid off, and managing debt, while those are higher priorities
for Gen Y workers.
Are Financial Wellness Programs the Answer?
Progressive U.S. businesses have responded to top concerns by
rapidly rolling out financial wellness programs. These programs
typically are built around financial education and counseling.
Unfortunately, the benefits of these programs have been slow to
materialize, and where the programs do exist, many human resource
professionals say the programs are ineffective.
The problem may lie in this finding by the National Bureau of
Economic Research published in 2012: “What evidence is there that
financial education actually increases financial literacy? The evidence
is more limited, and not as encouraging as one may expect.”
Costly Financing Alternatives
Last year the Center for Responsible Lending reported that after
households pay for housing, utilities, food, healthcare, debt payments
(not including mortgage or auto payments), and other basic expenses,
the typical U.S. family has just $100 left each month. Living paycheck
to paycheck with a razor-thin margin for unexpected expenses has
forced many households to opt for costly financing alternatives:
u Rent-to-Own is a fast growing $10 billion industry with 6 mil-
lion customers per year. (Source: https://www.rtohq.org/
about-rent-to-own)
u High-interest credit cards carried an average interest rate for
impaired credit customers of 22.3%. In 2012, the average credit
card debt for low- and middle-income Americans was $7,145.
(Source: http://www.creditcards.com/credit-card-news/
retail_card-stores-survey-apr_2014-1276.php)
u Payday Loans is a $50 billion business with 12 million borrowers
each year. (Source: http://www.businessinsider.com/
outrageous-facts-about-payday-loans-2013-10). On average
it costs $520 in annual interest to borrow an average of $375.
(Source) http://business.time.com/2012/07/20/12-million-
americans-will-pay-520-in-interest-to-borrow-375-this-year)
4

9. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
5
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
5
Additionally, 401(k)/403(b) loans are increasingly being used to meet
household expenses and emergencies. In the past 5 years, 21% of
people with a 401(k) have taken an early withdrawal or loan to make
ends meet.
What Employers Can Do to Lessen Financial
Problems of Employees
Employers want to help employees address their financial chal-
lenges, but employers still have to remain competitive and profitable.
Because of that, many employers are not able to offer significant
raises to employees this year, and many have also not offered raises
in several years.
Fortunately, there are steps employers can take at no cost or rela-
tively low cost, that can result in meaningful financial savings for
employees. Creative companies are moving beyond financial well-
ness to actual financial assistance.
Purchase Programs
Employee purchase programs are increasingly being implemented
by U.S. companies to help employees do more with what they
have. Purchase programs allow employees to buy major items like
appliances, electronics (including computers and TVs), home goods
(including mattresses, beds and other furniture), as well as many
other items and pay through payroll deductions. Typically, no credit
check is required and no interest is charged. There is also no risk of
late fees or ballooning interest.
The convenience of making a major purchase and paying over
time with convenient payroll deductions appeals to all employee
income segments and participation is typically broad. Low- and mid-
dle-income employees understandably find an employee purchase
program particularly valuable.
The extent of the level of affinity for employee purchase programs
is evident in the results of a recent survey of PayCheck Direct
participants:
u 93% said they valued having access to the program and that it
was a good alternative to buying on credit
u 84% indicated it helped them make a purchase they couldn’t
have otherwise made
u 88% said purchasing through the program reduced the finan-
cial stress of the purchase
u Over two-thirds of participants also said the program helped
improve their awareness of their financial situation

10. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
6
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
Recent Survey Shows Strong Support for Employee
Purchase Programs.
The study conducted by PayCheck Direct also shows the dramatic
effect that payroll deduction purchase programs create, especially for
employees experiencing credit challenges.
The primary finding was that employees having a difficult time
obtaining credit find purchase programs attractive. Additionally,
those enrolled in purchase programs felt more positive about their
financial situation and employers.
The findings also suggest employees who are credit challenged are
far more likely to agree this program demonstrates their employer
understands their needs (56%), and it makes them appreciate their
employer more (48%).
Win/Win/Win/Win
The company sponsoring the purchase program suggests employ-
ers benefit from higher productivity, fewer worries on the part of
employees, increased loyalty, and stronger employee engagement.
It is also believed employees benefit in three ways: they reduce stress
and gain the ability to buy things they wouldn’t otherwise be able to
buy, and they avoid costly financial burdens such as paying exorbi-
tant interest rates for payday loans.
[Note: PayCheck Direct is the sponsor of this white paper. For
information about how to offer PayCheck Direct’s programs to
your employees, see below.]
6

11. Between a Rock and a Hard Place? Controlling wages bene its while improving
employee engagement. Where’s your balance?
7
Sponsored by
PayCheck Direct®
is the
premier purchase program
that helps employees buy
what they need then make
interest-free payroll deduction
payments over 12 months.
And it’s easy to implement at
any time.
www.mypaycheckdirect.com
7
PayCheck Direct—Helping Employees Do More
With What They Have
PayCheck Direct, the sponsor of this white paper, offers purchase
programs that allow employees to buy major items like appliances,
electronics (including computers and TVs), home goods (including
mattresses, beds and other furniture), as well as many other items
and pay through payroll deductions. No credit check is required and
no interest is charged.
PayCheck Direct distinguishes itself by being a member of the
Bluestem Brands family of businesses which includes Bluestem’s
flagship brand, Fingerhut, and Gettington.com.
Bluestem’s unique mix of merchandising, credit and marketing com-
petencies come together to deliver tremendous value to its customers
and has propelled its growth well beyond the retailing indus-
try norm. PayCheck Direct leverages these resources to build the
employee purchase program industry’s premier offering.
For more information about PayCheck Direct’s programs, visit
www.MyPayCheckDirect.com or call, 1-866-584-0542